Fixed Asset Cancellation (FC)

Purpose

Documents in the Fixed Asset type do not allow modification and cancellation actions commonly found on other documents.  Document codes in the Fixed Asset document type serve to update the Fixed Asset Registry tables, Fixed Asset Journals, and the Fixed Asset Infrastructure Maintenance tables with different information over the life of an asset.  Thus it is the asset that is the ‘living’ record and not the documents that create and maintain it.

The Fixed Asset Cancellation document (with the FA11 event type) exits to cancel (undo) a wrongly entered Fixed Asset.  . The main processing associated with a Fixed Asset cancellation is to remove the asset balance from the balance sheet and remove the records from the Fixed Asset Registry table. If the asset number used (manually assigned or through Auto FA doc number utility) is incorrect/ not used by that particular department the asset has to be cancelled as the asset number cannot be modified using any of the existing Fixed Asset documents. If there are any modifications /cancellations to the MD (disbursement) document then the asset created with such reference needs to be cancelled. The FC document does not update FAPR or any other shell generation related table. Users must update these tables, when needed, manually.

A component has to be cancelled completely. There is no partial cancellation of a component, that is, some units of the component cannot be cancelled.  Nor can only one accounting line of the component be cancelled.  If the amount on one of the accounting lines of a component has to be reduced to zero, the FI document may have to be used; in which case the asset entry will not be removed from the FAR table. Similarly even fully disposed components cannot be cancelled.

The following main events occur when processing a FA cancellation document:

• Removes the FA records from the FA Registry tables and the Asset number can be reused,

• Removes records (if any) from the FA Warranty, FA Repair & Maintenance, FA Depreciation Elements Change, FA Depreciation History and FA Infrastructure Maintenance tables.

• Records are inserted to the FA component Journal.

• Records are inserted to the FA accounting Journal.

Structure

The FC document code contains the same fields and sections of the FA Document Code. The Fixed Asset Cancellation (FC) document has four section found in the accordions.  Each is broken down into various sub sections that contain groups of related fields.  Details on the individual fields can be found in the individual field helps for each field.  Many fields are not editable on this document.  Only those fields used to create and record the cancellation postings are editable.  All others are completed with the Auto Apply action found on the Header and Component Line which bring information into the document from the Fixed Asset Registry tables.

The Fixed Asset Cancellation (FC) document has a Header section and the following detail sections:

• Header

  Lists general information about the document as well as information that applies to the asset as a whole versus the individual components of the asset.

  • General Information: This tab contains descriptive fields and date information common to most document headers.  In addition to these common fields are ones for identifying a Fixed Asset Number, Event Type, Asset System Number and Asset System Description.

  • Extended Document Description:  This tab contains the standard extended description field that is associated with the document.  It is not an extended description for the asset as it is not stored on any asset information tables.

  • Responsibility Center: This tab contains Chart of Account (COA) fields defined as being responsible for the asset. None of the fields can be modified in the FC document.

  • Composite Asset Information: This tab contains many asset definition fields which serve as defaults to the individual Components of the asset.  Many of these fields control depreciation. None of the fields can be modified in the FC document.

  • Document Information: This tab is common to all documents where fields are shown for who and when a document was initially created.  Two additional fields record who was the last to perform a save on the document and when that occurred.

• Component

  Lists specific attributes of each asset component.  Components may be added during the life of the asset but cannot be added at time of cancellation.  The Auto Apply action is also available on this page to retrieve values from the Fixed Asset Registry table for only the specified components.

  • Component General Information: This section contains descriptive fields which are recorded for informational reporting on the component.  Only Component Number is editable in the case a user wishes to specify a specific component to cancel instead of canceling all components. The Asset System Number and Asset System Description are inferred from the FA document when Auto Apply is used.

  • Acquisition Details: This section contains fields captured at acquisition.

  • Component Location Details: This section contains the same location information as the Header for recording such details at a component that may be located at a different location as not all components may be physically attached to one asset.

  • Component Classification: This section contains many of the same fields found on the Header for asset definition that will control depreciation.  Other fields include the Fixed Asset Classification field, which controls how the asset is recorded for accounting purposes, as well as fields to record the Balance Sheet Accounts that will be used for the asset.

  • Cost, Valuation, & Depreciation: This section contains several information fields for reporting needs as well as various amounts accumulated to date before the cancellation.

• Accounting

  Lists the Chart of Account (COA) details for how each asset component was funded.  All information at this level is protected and will be brought in from the Fixed Asset Registry Accounting Line table or from the Cancellation document Header. Accounting Lines cannot be added or deleted in the FC document.

  • General Information: This section contains descriptive fields and date information common to most document accounting lines.  The Event Type field in this section is protected as it defaults from the Header.  An amount is displayed to record the total amount of depreciation to date for that line so the document can back out that accounting as well.
  • Fund Accounting: This section contains the COA fields common to the section as found on other documents.
  • Detail Accounting: This section contains the COA fields common to the section as found on other documents.

• Posting

  Lists the system-generated details used to recognize the financial impact of a specific accounting line.  If a fixed asset document has an accounting impact, the system uses the posting line information to update the fixed asset and general accounting journals and other accounting tables such as Balance Sheet Balance (BBAL).  The fields and sections on this page are like those of other documents with the addition of a section to provide the Fixed Asset Number and Component Number.

  The FC document generates posting lines reversing the depreciation expense and reversing the capitalization of asset.

Tasks

• To create a Fixed Asset Cancellation (FC) document, go to Cancel Documents.